On the prediction of the labor welfare by using Markov chain approach

Abstract

In this contribution, the Markov chain approach is used to predict the job satisfaction of employees in a telecommunications company in Mexico. Under certain assumptions, the Chapman–Kolmogorov equation is applied to estimate the probabilities that: employees remain satisfied if they are satisfied; if they are not satisfied, the probability that they remain unsatisfied; if they are satisfied, the probability that they will become unsatisfied; and finally, if they are unsatisfied, the probability that they will become satisfied, within a one-year prediction horizon. Our proposal could be applied to support decision-making in human capital management strategies.